HCC Comments on WTC Tragedy, Anticipated Impact on 3Q Results

Stephen L. Way, chairman and CEO of HCC Insurance Holdings Inc., in commenting on Tuesday’s disaster, said, “Most importantly, let me state that all of us at HCC send our thoughts and prayers to all the families affected by this unparalleled tragedy. We will be contributing $100,000 to the families of policemen and firefighters killed in the line of duty and encourage our peers to follow our lead. These men and women showed courage and resolve in performing their duties without regard to their own safety. It is comforting to know that such brave public servants are out there in time of need.”

Way continued, “We have had many calls from investors, analysts and the news media for our comments on the insurance aspects of this disaster and in particular, the expected effect on HCC. While we are still considering many of the potential implications of this tragedy on the insurance industry, we can provide a preliminary response as follows:

“HCC has no involvement in the insurance coverage of either American or United Airlines. HCC does have a small participation in the World Trade Center property insurance coverage and some of the surrounding buildings. In addition, we anticipate some claims from our Medical Stop-Loss business in the New York City area. We also have some exposure from our Accident & Health and Workers Compensation reinsurance account.

“Although it is still too early to provide specific estimates, we anticipate that our net loss will be confined to an amount less than our third quarter earnings. Obviously, this loss will have no impact on the Company’s capital or the strength of our insurance operations and will not impair our ability to continue to expand our business in a rising market.”

Topics Profit Loss